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The US annual inflation has hit the highest level for nearly 40 years.

According to the latest figures, prices rose 6.8% in the year to November.

Price rises have pushed up food shopping bills, and petrol prices jumped 6.1%, while the cost of second-hand cars and rent also rose.

While the monthly pace of price rises at 0.8% eased a little compared to October’s 0.9%.

Prices for American consumers are rising at their fastest annual rate since June 1982. But the impact is felt more amongst those on the lowest incomes, with the least room to manage.

Rising inflation is also putting pressure on President Joe Biden as he tries to pass his $1.9tn social spending bill.

Some economists blame the president’s previous spending programs, designed to offer support amid the Covid pandemic, for exacerbating price increases.

“One of the major reasons we have inflation is because the government spent so much money,” said Christopher Campbell, chief strategist at Kroll a risk consultancy, and a former Treasury official under President Donald Trump.

He argued that further spending could make inflation worse.

“At the end of the day we hopefully are on the tail end of the pandemic, and the government is still putting its foot on the gas, on the levels of spending.”

In the meantime the poorest are facing both the end of pandemic-era extra support and rising prices.

Price rises are affecting some parts of the country more than others too, with the south and mid-west impacted more.

Dare to Care, a food bank in Louisville, Kentucky, said it has felt the effect of both inflation and supply chain problems.

Usually a lot of Dare to Care’s food comes from producers and retailers passing on any surplus they have.

Dare to Care has had to buy food at retail prices instead, and the cost of transport has risen too.

As a result, Dare to Care has made compromises, like not including wholegrain bread or pure fruit juice as often.

President Biden has pledged to make tackling inflation a priority and has made moves to ease supply chain problems, including changing rules for transport operators. But expectations are now focused squarely on the Federal Reserve too.

Speculation is mounting that the Fed will reduce the bond-buying support it provides every month more quickly than planned, paving the way for a possible rise in interest rates next year.

The US Consumer Price Index (CPI) increased by 0.2% in October 2015, after two months of declines.

The figures, along with the strong employment numbers in October, increase speculation that the Federal Reserve will raise interest rates in December.

Prices were pushed up by the rising cost of electricity and a resurgence in petrol prices.

A survey of US fund managers by Bank of America Merrill Lynch found that four-fifths of the managers surveyed expected a rate rise next month.US CPI October 2015

The so-called core CPI, which strips out food and energy, also rose 0.2% after a similar increase in September.

Medical costs accounted for much of the increase. Medical care prices rose 0.7%, the largest increase since April, and hospital costs increased by 2%.

Although food prices rose only 0.1%, the smallest gain since May, they edged up 0.4% in September and four out of six of the indexes compiled by the big grocery store food groups showed the largest increase since August 2011.

The biggest price falls were in clothing, shoes and new cars.

Over the entire 12 months through to October, the core CPI increased by 1.9%.